On 18 November 2016, Cyprus and India signed a new Double Taxation Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income between Cyprus and India (the “DTT”), together with the accompanying Protocol.
 
Cyprus ratified the DTT on 25 November 2016. Once the ratification procedures in both countries are completed, the DTT will enter into force, replacing the existing DTT.

Upon entry into force of the DTT, it has been agreed that the Indian Authorities will rescind the classification of Cyprus as a 'Notified Jurisdictional Area' with retrospective effect as from 1 of November 2013, the date on which Cyprus was classified as such.  
 
The DTT includes provisions for source based taxation for gains from the disposal of shares in certain circumstances, and includes a “grandfathering” provision for investments acquired before 1 April 2017, where the taxation of the disposal of such investments at any future date will remain with the contracting state of residence of the seller.

The full text of the treaty can be found here.